PSBs have announced schemes for existing MSME (micro, small and medium enterprises) borrowers with some banks additionally extending schemes to other segments including agriculture, self-help groups and organised sector employees.

The loan schemes have a moratorium period of up to 6 months.

For example, Indian Bank announced five special COVID-19 emergency loan schemes for its customers from salaried class, pensioners, self-help groups, MSMEs and large corporates. Its customers can avail a salary loan of up to 20 times of their last drawn monthly gross salary, with an upper limit of Rs 2 lakh.

For senior citizens, an emergency pension loan, 15 times their monthly pension, with an upper limit of Rs 2 lakh, can be borrowed. Its comes with a 5-year loan tenor and zero concessional interest or charges.

State-owned financial institution SIDBI announced a concessional interest rate of 5 percent for MSME under the SIDBI Assistance to Facilitate Emergency Response against coronavirus.

According to its statement, MSMEs involved in manufacturing of any products or providing any services related to fighting the pandemic such as sanitisers, masks, gloves and bodysuit ventilators will get loans at a concessional rate of 5 percent.